Reviewing Life Cover

When is the best time for reviewing life cover?

Most people take out a life insurance policy, stick it in a drawer and never look at it again.

Big mistake.

You should be reviewing your life cover and mortgage protection policies regularly to check

1) if  there’s better cover available at another insurance company
2) if your policy is still suitable for your current circumstances

Did you know that the price of life insurance has fallen by 40% over the past 10 years.

Have you checked if you’re paying over the odds?

You can get a free instant life insurance quote here.

• 40% Price Drop

Trigger Events For Reviewing Life Cover

1. You’re having a baby

Congratulations! Your life is about to change for the better but with a bundle of joy comes a bundle of responsibilities. You’re no longer the most important person; he or she must be put first. As the adult, it’s your duty to make sure your child is taken care of should something happen to you or your partner.

A mortgage protection policy will clear your mortgage and ensure your child has somewhere to live. But how will your child survive without your income? Who will pay for food, clothes, school, college. You need a life insurance policy too. Life insurance leaves a lump sum to take care of your child’s needs.

• Another 7lb 10oz reason to take life cover

2. You’re getting married

When you’re married, you share everything with your partner. This includes financial obligations. You should make sure all your debts are covered.

• Are Your Debts Covered?

Some people think they don’t need to consider life insurance until they have children but they’s be mistaken. If you’re planning on having children then you should put life cover in place early to make sure you are not excluded from some maternity benefits.

3. You’re buying a home

You must take out a mortgage protection policy when you buy a family home. We would always advise putting a separate life insurance policy in place  to protect your family. Mortgage protection will take care of the house; life insurance will take care of the people in it.

• Mortgage Protection Flyer

4. Changing jobs

Well done on the pay rise, it’s a rarity these days. Enjoy the new and improved lifestyle! As your income has risen, you’ll need to increase your life cover too. Remember life insurance is there to replace the income your family lose on your death. If there’s more income to replace, then you need more life insurance.

On the other hand, in the more likely situation that you have experienced a drop in income recently, then you can save money by reducing your life insurance cover.

5. Has your marital status changed?

If you’re suddenly single through death or separation you need to consider reviewing life cover.

The first question to ask is whether you need cover anymore. Do your children rely on your income? If not, then you could cancel your life cover if money is tight.

However if you have dependent children but your partner is no longer with you to support them, you may have to increase your cover. You’re now the sole earner and your children are 100% reliant on you. What would happen to them if you couldn’t work?

You’ll need to look at life insurance and income protection.

Reviewing Life Cover – Over to you..

Treat major life events as a trigger for reviewing life cover.

Speak to a professional who can advise whether you’re under insured or over insured.

We’re the life insurance experts, that’s all we do and we would be delighted to help you.

Call me on 05793 20836 or fill in the short form below and I’ll be right back.

Otherwise scroll down and open the next lesson – income protection.

Nick McGowan
LION.ie | Life Insurance for Smart People

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